Correlation Between Shandong and Zoy Home
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By analyzing existing cross correlation between Shandong Hi Speed RoadBridge and Zoy Home Furnishing, you can compare the effects of market volatilities on Shandong and Zoy Home and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shandong with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong and Zoy Home.
Diversification Opportunities for Shandong and Zoy Home
Weak diversification
The 3 months correlation between Shandong and Zoy is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hi Speed RoadBridge and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and Shandong is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shandong Hi Speed RoadBridge are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Shandong i.e., Shandong and Zoy Home go up and down completely randomly.
Pair Corralation between Shandong and Zoy Home
Assuming the 90 days trading horizon Shandong Hi Speed RoadBridge is expected to generate 0.61 times more return on investment than Zoy Home. However, Shandong Hi Speed RoadBridge is 1.64 times less risky than Zoy Home. It trades about 0.21 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about -0.06 per unit of risk. If you would invest 559.00 in Shandong Hi Speed RoadBridge on November 29, 2024 and sell it today you would earn a total of 20.00 from holding Shandong Hi Speed RoadBridge or generate 3.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Hi Speed RoadBridge vs. Zoy Home Furnishing
Performance |
Timeline |
Shandong Hi Speed |
Zoy Home Furnishing |
Shandong and Zoy Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong and Zoy Home
The main advantage of trading using opposite Shandong and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong position performs unexpectedly, Zoy Home can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zoy Home will offset losses from the drop in Zoy Home's long position.Shandong vs. Soochow Suzhou Industrial | ||
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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